28 Futurecasting: BANKING
RIC DEVORE REGIONAL PRESIDENT, PNC
Q: HOW IS ARTIFICIAL INTELLIGENCE SHAPING FINANCIAL MANAGEMENT?
A:
BANKING INDUSTRY PRIMED FOR TECH INNOVATION While many other industries with high volumes of in-person interactions such as restaurants and entertainment often could not operate during shutdowns, the banking industry had many pre-existing digital options. A significant portion of its customers were already using banking apps, websites and other digital tools to manage their money when the crisis hit. For industries like it, the question during the pandemic became one of expanding adoption of virtual practices and use of technology already in place rather than having to invent new interfaces on the fly. For a sector primed for further rapid innovation and consumer adoption, the years ahead hold critical questions about the future of brick and mortar, the role of technology and big data in meeting consumer demand, and equity and wealth distribution.
With massive volumes of data being generated by networked devices – and backed by advances in computing power – the use of Artificial and Machine Learning continues to accelerate. The financial services industry is harnessing the power of AI and ML to help reduce exposure to fraud, execute faster payments, and provide data-driven business insights. While AI and ML drive automation, optimization and intelligence throughout the financial services ecosystem, the adoption and integration of AI-based engines and ML algorithms is perhaps most palpable in treasury management. Because of ML’s propensity for recognizing patterns in data and behavior, it is commonly employed to help identify fraudulent transactions. The convergence of mobile technology and digital commerce has ushered in realtime payment innovations, and can allow participants to send and receive funds immediately at any time. AI- and ML-enabled technologies are crucial for monitoring and analyzing transactions in the fractions of a second necessary to facilitate real-time payments. Machine learning is no longer a curiosity or novelty, it’s a business imperative.
